Not upheld: account blocking and customer service quality complaint against Modular FS Limited (trading as Pockit)

Decision detail

Summary

Mr B complained that Pockit unfairly blocked his account three times (each for over a week) and provided poor customer service. The ombudsman found that while Pockit could have improved communication clarity and continuity, the blocks were necessary and appropriate to comply with UK regulatory obligations regarding financial crime prevention and the establishment of transaction purposes and fund origins. Although Mr B experienced significant inconvenience and had disclosed vulnerabilities and health issues, the partial nature of the blocks (allowing some transactions and deposits) and Pockit's adaptation of its review process mitigated the impact. The ombudsman upheld Pockit's £25 compensation for delays in responding as fair and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Pockit's decision to block and review the account was compliant with UK legislation and regulatory obligations regarding financial crime prevention. While acknowledging that Pockit could have been clearer about processes and next steps, and that some responses were automated with poor continuity, the ombudsman considered the blocks appropriate and necessary. The partial nature of the blocks mitigated their impact as Mr B retained some account functionality. The ombudsman found Pockit's enquiries necessary and appropriate, with no unreasonable delays in the review process. Pockit's adaptation of its review process and consideration of impact when deciding to unblock demonstrated reasonable conduct.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website